Pronghorn Corp. is thinking about opening a soccer camp in southern California. To start the camp, Pronghorn would need to purchase land and build four soccer fields and a sleeping and dining facility to house 150 soccer players. Each year, the camp would be run for 8 sessions of 1 week each. The company would hire college soccer players as coaches. The camp attendees would be male and female soccer players ages 12-18. Property values in southern California have enjoyed a steady increase in value. It is expected that after using the facility for 20 years, Pronghorn can sell the property for more than it was originally purchased for. The following amounts have been estimated. Cost of land $300,600 Cost to build soccer fields, dorm and dining facility $601,200 Annual cash inflows assuming 150 players and 8 weeks $921,840 Annual cash outflows $841,680 Estimated useful life 20 years Salvage value $1,503,000 Discount rate 8% Calculate the net present value of the project. (If the net present value is negative, use either a negative sign preceding the number eg. 45 or parentheses .. (45). Round answer to o decimal places, e.g. 125. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net present value Should the project be accepted? The project be accepted 2 2 Table 2 Future Value of an Annuity of 1 (n) Payments 5% 6% 7% 8% 10% 11% 12% 15% 1.00000 100000 100000 10000 100000 1.00000 100000 100000 1.00000 1.00000 2.04000 2.05000 2.06000 2.0700 2.08000 2.09000 2.10000 2.11000 2.12000 2.15000 3 3.12160 3.152503.18360 3.21493.24640 3.27810 3.31000 334210 3.37440 3.47250 4 4.24646 431013 437462 4.4399 4.50611 4.57313 4.64100 4.70973 4.77933 4.99338 5 5.41632 5.52563 5.637095.75075.86660 5.98471 6.10510 6.22780 6.35285 6.74238 6 6.63298 6.80191 697532 7.1533 733592 7.52334 7.71561 791286 8.11519 8.75374 7,89829 8.14201 8.39384 8.6540 8.92280 9.20014 948717 9.78327 10.08901 11.06680 8 9.21423 9.54911 9.89747 10.2598 10.63663 11.02847 11.43589 11.85943 12.29969 13.72682 9 10.58280 11.02656 11.49132 11.9780 12.48756 13.02104 13.57948 14.16397 14.77566 16.78584 10 12.00611 12.57789 13.18079 13.8164 14.48656 15.19293 15.93743 16.72201 17.54874 20.30372 11 13.48635 14.20679 14.97164 15.7836 16.64549 17.56029 18.53117 19.56143 20.65458 24.34928 12 15.02581 1591713 16.86994 17.8585 18.97713 20.14072 21.38428 22.71319 24.13313 29.00167 13 16.62684 17.71298 18.88214 20.1406 21.49530 22.95339 24.52271 26.21164 28.02911 34.35192 14 18.29191 19.59863 21.01507 223505 24 21492 26.01919 27.97498 30.09492 32.39260 40.50471 15 20.02359 21.57856 23.27597 25.1290 27.13211 29.36092 31.77248 34 40536 37.27972 47.58041 16 21.82453 23.65749 25.67253 27.8881 90.32428 33.00340 35.94973 39.18995 42.75328 5571747 17 23.69751 25.84037 28 21288 30.8402 33.75023 36.97351 40.54470 44,50084 48.88367 65.07509 18 25.64541 28.13238 30.90565 33.9990 37.45024 4130134 45.39917 50.39593 55.7497275.83636 19 27.67123 30.33900 33.75999 37.3790 41.44626 46.01846 51.15909 56.93949 63.439688821181 20 29.77808 33.06595 36.78559 40.9955 45.76196 31.16012 5727500 64.20283 72.05244 102.44358 Table 3 Present Value of 1 1 5 7 Periods 496 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 95238 94340 93458 92593 91743 90909 90090 89286 86957 2 92456 90703 89000 87344 85734 .84168 82645 .81162 79719.75614 3 88900 86384 .83962 .81630 .79383 77218 75132 73119 .71178 .65752 4 .85480 82270 79209 .76290 .73503.70843 .68301 .65873.63552 57175 .82193 78353 74726 71299 68058 .64993 .62092 59345 56743 49718 6 .79031 74622 70496 66634 63017 59627 56447 53464 50663 43233 .75992 71068 .66506 .62275 58349 54703 51316 48166 45235 37594 8 .73069 67684 62741 58201 54027 50187 46651 43393 40388 32690 9 .70259 .64461 59190 54393 50025 46043 42410 39092 36061 28426 10 .67556 61391 55839 50835 46319 42241 38554 35218 32197 24719 11 .64958 58468 52679 47509 42888 38753 35049 31728 28748 21494 12 62460 55684 49697 44401 39711 35554 31863 28584 25668 18691 13 .6005753032 46884 41496 36770 32618 28966 25751 22917 16253 14 .57748 50507 44230 38782 34046 29925 26333 23199 20462 14133 15 55526 48102 4172736245 31524 27454 23939 20900 18270 12289 16 53391 4581139365 33873 29189 29187 21763 18829 16312 10687 17 51337 43630 37136 31657 27027 23107 19785 16963 14364 09293 18 .49363 41552 35034 29586 2502521199 1798615282 13004 .08081 19 47464 39573 33051 27615 23171 .19449 16351 13768 11611 07027 20 45639 37689 3115025842 21435 17343 14864 12403 10367 06110 Table 4 Present Value of an Annuity of 1 (n) 1 4% Payments 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 95238 94340 93458 92593 91743 90909 90090 .89286 .86957 2 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 1.73554 1.71252 1.69005 1.62571 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 2.44371 2.40183 2.28323 4 3.62990 3.54595 3.46511 3.38721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 5 4.45182 432948 4.21236 4.10020 3.99271 3.88965 3.79079 3.69590 3.60478 3.35216 6 5.24214 5.075694.91732 4.76654 4.62288 4.48592 4.35526 4.23054 4.11141 3.78448 7 6.00205 5.78637 5.58238 5.38929 5.20637 5.03295 4.86842 4.71220 4.56376 4.16042 8 6.73274 6.46321 6.20979 5.97130 5.74664 5.53482 5.33493 5.14612 4.96764 4.48732 9 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.53705 5.32825 4.77158 10 8.11090 7.721737.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.650225.01877 11 8.76048 8.30641 7.88687 7.49867 7.13896 6.80519 6.49506 6.20652 5.93770 5.23371 12 9.38507 8.863258.38384 7.94269 753608 7.16073 6.81369 6.49236 6.19437 3.42062 13 9.98565 9.39357 8.85268 8.35765 7.90378 7.486907.10336 6.74987 6.42355 5.58315 14 10.56312 9.898649.294988.74547 8.24424 7.78615 7.36669 6.98187 6.62817 5.72448 15 11.11839 10.37966 9.71225 9.10791 8.55948 8.060697.60608 7.19087 6.81086 5.84737 16 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 0.37916 6.97399 5.95424 17 12.16567 11.27407 1047726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 6.04716 18 12.65930 11.68959 10.82760 10.05909 9.37189 8.75563 8.20141 2.701627.24967 6.12 97 19 13.13394 12.08532 11.15812 10.33560 9.60B60 5.95012 8.36492 7.839297.36578 6.19823 20 13.59033 12.46221 11.46992 10.89401 9.81815 9.12855 8.51356 96333 46944 6.25932